Brussels weighs next steps

European Council President Donald Tusk has convened an emergency eurozone summit for Tuesday, as EU leaders considered their next moves after Sunday’s overwhelming rejection by Greek voters of bailout terms demanded by creditors.

A French diplomatic source said the decision came after German Chancellor Angela Merkel and French President François Hollande spoke on the phone Sunday and agreed that the “No” from Greek voters must be respected.

European politicians reacted to the Greek referendum results Sunday night with a mixture of dismay and resignation as it became clear that the No campaign was winning by a large margin.

“We have to respect the vote of the Greek people,” said Martin Schulz, the president of the European Parliament. “We are in a difficult situation; the Greek people said no but 18 other members agreed on the proposals of which Greeks said no.”

In a videotaped statement, Schulz said Greek Prime Minister Alexis Tsipras’ promise that with a No vote the position for negotiating a better deal would become better “is in my eyes not true.”

Said Schulz, “It’s now up to the Greek government to make proposals that would convince the eurozone and the institutions in Brussels that it is necessary, possible, and even effective, to renegotiate. This depends on the proposals coming from Greece.”

Schulz also called for a special humanitarian aid program for Greece for the coming days during what he called a “difficult and even dramatic time.”

A statement issued by the European Commission said President Jean-Claude Juncker was consulting “with the democratically elected leaders of the other 18 eurozone members as well as with the Heads of the EU institutions” and said he would have a conference call with other creditors on Monday morning and would address the European Parliament in Strasbourg on Tuesday.

If the reactions of other Parliament leaders on Sunday night were any indication, that debate would be a lively one.

“The ‘No’ is a bad signal for Europe and for Greece,” said German MEP Manfred Weber, head of the center-right European People’s Party group in the European Parliament, on German television network ARD. “We will help the needs of the Greek people but I do not see negotiation with [Greek Finance Minister Yanis] Varoufakis, who has called the lenders terrorists. The rhetoric needs to stop. No state is more superior than another. Now the others must consider if they can help Greece and how.”

Gianni Pittella, the leader of the Progressive Alliance of Socialists and Democrats in the Parliament, was more conciliatory than Schulz, who is also a member of the group.

“We respect the will of the Greek people and take note of the clear outcome of the referendum,” Pittella said. “For the whole of the European Union, for national governments, for the Athens authorities and for the international creditors, the Greek crisis is a lesson from which we must draw conclusions for the future, so that the current situation or similar events in the future do not undermine the existence of the EU.”

Pittella added that it was “time for some member states and ministers to stop with unacceptable rigidity, national selfishness and domestic political games.”

Others tried to sound a more reassuring tone.

“This is not the end,” said Guy Verhofstadt, the leader of the Alliance of Liberals and Democrats for Europe group. “This rejection will create a lot of uncertainty and could even lead to an unwanted Grexit. It’s now up to [Greek Prime Minister Alexis] Tsipras to show that he is serious about wanting to stay in the eurozone. He has to propose a credible reform and reimbursement package. If he does, European leaders should give him a second chance.”

But it was unclear Sunday night how or whether that second chance would be offered.

Officials from the Eurogroup said no new meeting of Greece’s creditors had been scheduled, other than a phone call between deputy finance ministers set for tomorrow.

“There can only be negotiations on the basis of a mandate,” said an EU source, referring to the fact that the bailout deal that had been offered to Greece was now off the table. “As you know the program expired last Tuesday night, so no negotiations are taking place.”

European Conservatives and Reformists party leader Syed Kamall, who supports a renegotiation of the U.K.’s membership in the EU, said the Greeks’ decision to vote No “will shake the notion of some European leaders who believe that the peoples of European nations will always blindly vote for further integration and will always take rather than leave the offer on the table.”

“In the coming days the Greek people are going to face some dark moments and I hope that the EU will not seek to punish them for their democratic choice,” Kamall said.

Euroskeptic politicians, meanwhile, reveled in the referendum result, which they said proved that citizens were increasingly rejecting European integration.

“I commend the Greek people for calling the EU’s bluff,” said Nigel Farage, leader of the UK Independence Party. “The EU project is now dying. It’s fantastic to see the courage of the Greek people in the face of political and economic bullying from Brussels. “

Marine Le Pen, leader of the French National Front party, also applauded the result.

“The victory of the No side in the Greek referendum is a victory of the people against the European oligarchy,” Le Pen said. “It’s a No of freedom, of rebellion against European orders that want to impose their common currency at any price, through the most inhumane and counter-productive austerity.”

EU leaders in Brussels had played a careful rhetorical game over the past week, hoping to sway the outcome of the vote by appealing to European solidarity in calling for a “Yes” vote.

Juncker and Schulz both gave emotional speeches soon after the referendum was announced, criticizing the negotiating tactics of Tsipras and trying to signal to Greeks that the vote amounted to a decision on whether to stay in the euro.

Related stories on these topics:

Gert

I hope the European leaders will be smart and do the right thing: nothing at all. Let Syriza come with a serious proposal, which they failed to do for almost halve a year they are ‘negotiating’. And then it is probably your turn to say No to them, if it fails to meet the minimum conditions.

Posted on 7/5/15 | 10:23 PM CEST

Ed

If a few billion dollars is going to bankrupt Europe, it is past time for them to go bankrupt.

Posted on 7/5/15 | 10:37 PM CEST

Flechette

Don’t ya just love Keynesian economics?

Worked great for Greece!

Posted on 7/5/15 | 10:41 PM CEST

Liberals, old cheats and liars

Who wants to bet these old toads won’t be talking about how to make government smaller or more cost-effective?

Posted on 7/5/15 | 10:42 PM CEST

George

EU is governed by a bunch of small time thinkers. Don’t they see what is happening right on their border? Brussels can continue to play their games but don’t for a second think that the Russians and Chinese would not jump at the chance to be the humanitarian saviours of Greece. And get a couple of deep water ports on NATOs border as recompense. Russia and China are playing the long game while the EU is so hell bent on doing their best to make an example of Greece.

Posted on 7/5/15 | 11:01 PM CEST

Teddi

The only (and correct way) for the EU to save the situation is to provide serious debt relief to Greece, otherwise and deal won’t work. If they provide debt relief to one of the PIIGS, they will have to write off debt with the other PIIGS. We are talking about (even in steps) about 300-500 billion euros. That would crush the Euro currency…

The third level (each country has its own local and national gov’t) of gov’t in Brussels has dug its own hole – in which it will be buried.

More and more gov’t kills…

Posted on 7/5/15 | 11:02 PM CEST

Goofy R

Joel Rolley

What the Greek Syriza won’t say is if you vote no we are negotiating from a 100% haircut point, meaning they go to the table and say, “See! My people don’t want to pay any money back, so you all need to take a haircut of xx%, which is better than 100% because that is what you are facing and by the way keep the money coming if you want to see any return. We do need to respect the referendum, and leave them alone. No more austerity, but no more loans either. Good luck!!! The Greeks are hoping that creditors taking a xx% haircut is better for the creditors than losing everything they have already loaned. I thought Econ101 said to never consider sunk costs because that money is gone. Leave the Greeks alone, don’t give them any more money, hold them to their NATO defnese commitments and they will clearly see what REAL austerity looks like, I.E. You can only spend what you take in. Should be a fun show to watch.

Posted on 7/5/15 | 11:10 PM CEST

JR

LOL: According to Juncker would the negotiation position of Tsipras be weakened by an No/Oxi victory, so a deal will be easy now?
The disingeniousness of Juncker is now on public display. Ugly ain’t it?

Posted on 7/5/15 | 11:18 PM CEST

Bud Wood

It seems curious that there is any need for the EU to continue. Didn’t seem like a valid idea in the first place.

Posted on 7/5/15 | 11:25 PM CEST

Enrique Ferro

A second chance? They sound arrogant, don’t they? They know: restructure the debt, write off as much as possible, substitute the remaining debt for a fresh one helping future development. And stop sucking Greek blood! Ah, and stop funding failed fascistoid regimes like the Ukrainian…

Posted on 7/5/15 | 11:28 PM CEST

MikeCJ

Al the lenders would be stupid to give any further funds to Greece. Their vote indicates they have no intentions of paying anything back. In 6 months, they’ll pull the same thing. Why give them any further money they won’t pay back?

Posted on 7/5/15 | 11:38 PM CEST

BYE BYE LEFTIST GREECE

Cut the freeloading Greeks from the EU! They are a bunch of leeches who are not motivated to pay back what they owe. So, don’t bail them out, because a year or two, this will start over again.

Posted on 7/5/15 | 11:42 PM CEST

Fritz Gompart

I’ll parse the words and get straight to the choices the EU has
1) Dump many, many more billions of (increasingly worthless) Euro’s into Greece – a society that is completely bankrupt (literally and figuratively) of drive and determination to succeed.

2) Boot Greece out and cut all ties. Hopefully this will relieve all responsibility of the EU to support Greece.

3) Procrastinate, delay, and avoid the inevitable failure of the Greece experiment – thereby making the fall significantly worse by factors of 10 each quarter that passes.

#3 is the easiest for a politician as it requires virtually no effort. Since no actual decisions are being made with #3 – there is nothing the politician can be held accountable for.

Posted on 7/5/15 | 11:48 PM CEST

Justin Case

The people who vote for Ted Cruz are fools.

Posted on 7/5/15 | 11:58 PM CEST

Justin Case

It’s all scam, the system is not going to crash.

Posted on 7/5/15 | 11:59 PM CEST

Tom

The children of Greece have thrown their tantrum, demanding that others continue to pay for their free lunch. The sooner all are disposed of the idea that Greece is part of “Europe,” the better.

Posted on 7/6/15 | 12:19 AM CEST

Yukon John

There’s not going to be a counter from the Greeks that doesn’t included a big haircut to creditors, so the oneous isn’t necessarily on Greece. Many in the west have been more than willing to rollover loans indefinitely, delaying necessary measures all know are looming, while they’ve benefitted immensely from Central Banks bailouts of unwise private investments.
I’m afraid the profligate policies of neo-liberals are finally resulting where progressives always knew they would.

Posted on 7/6/15 | 12:31 AM CEST

Unreal Uknow

The real irony here is that the EU wanted to be like one big country with open borders and all, but when it comes to paying back money, they want to segregate themselves back into individual nations.

Posted on 7/6/15 | 12:36 AM CEST

Brian

I know I owe you a pile of money but now I am going to dictate the terms… LOL cut their throats and let them suffer the consequences.

Bob

Jesus is a gobshite

The system is not going to crash, chill out.

Posted on 7/6/15 | 2:02 AM CEST

datura brugmansia

Cut them loose, and let them collapse. They deserve it, expecting someone else to take responsibility for the Greek government and its out of control spending. The Greeks have already made a pass at confiscation of assets (retirements), and they still expect help, on their terms no less. Let them collapse, and come groveling back.

Posted on 7/6/15 | 2:16 AM CEST

Mr Happy Man

This whole experiment should have just stuck with coal and steel. We wouldn’t have seen this problem if it was kept to this.

Thank God big government is FINALLY failing. Maybe we might actually get some freedom back. Tell you what, I’d rather have more freedom than a new car. All the fat people go on a diet, that disgusting con to the stupid “global warming” gets thrown in the trash heap and the noise level of gangster con man government gets dialed down.

Posted on 7/6/15 | 4:02 AM CEST

DannyK

@Flechette – “Don’t ya just love Keynesian economics?”

Unfortunately, what you and most people consider to be the policies Keynes championed have nothing to do with the way modern economies are currently run. What Keynes said should happen was that in boom times we should build up a surplus, and then during times when the economy was weak that surplus should be pumped into the economy – which makes tons of sense. But that’s not what we do. We just run big deficits and boom times, and even bigger ones when the economy is weak. This is not what Keynes contemplated.

Posted on 7/6/15 | 4:39 AM CEST

Clifford clammy

Fcuk Greece Fcuk the Euros.

Posted on 7/6/15 | 4:47 AM CEST

Doc Lemm

The Bankster’s worldwide ponzi scam is coming to an end. People don’t need these counterfeiting international loan sharks and the subsequent predation stalking the future of civilization any longer. Time to confiscate the gold vaults of the 1 percent and return it all to each and every Citizen… It’s time to create money based on worth and not debt and escalating taxes…

Posted on 7/6/15 | 5:15 AM CEST

arminius

Leaders would tell Greece to go p**s up a rope, and throw them out of the EU.
The EU surrender-monkeys, however will give them just ONE more extension, and just ONE more chance…..
And then, another.
And then, another. Illustrating for all the world how toothless, and wedded to their own power structure the EU bureaucrats truly are. Better to retain a member at all costs than to do the right thing for the citizenry.
After all, when have European countries acceded to the demands of the mere proletariat beyond superficial window dressing? No, no: give them bread and circuses, but by all means keep the reins of power out of their hands, and keep them dependent upon government largesse.

Posted on 7/6/15 | 5:21 AM CEST

Ronnie

There is no understanding Syriza coming for a new bailout and more loans. Greece already borrowed Bn400 years ago and already received over a third of that for free by the creditors conceding part of the loans. Who do they think pays for that? The rest of Europe, that’s who. More recently Greece has been able to keep extending and extending their ECB liquidity. Yet Syriza has failed to make reforms and failed to negotiate new loans. Where do they think the money is coming from – falling out of the sky? No, the rest of Europe actually pays for that. When was the last time Greece was able to make a contribution to Europe? If Greece had money spare, would they loan it to another country like Greece? Its bizarre. So ok they took a referendum and surprise surprise the population wants a better deal and the banks to flow with more Euros. Well don’t we all want a better deal. We all want lower interest rates on our home loans. We all want higher wages. We all want lower taxes. But we’re not going to get those things as long as countries like Greece default on their loans! Syriza are just like all the previous Greek governments – sucking the blood out of whoever is stupid enough to loan them money.

Posted on 7/6/15 | 6:04 AM CEST

guest

Member of the EU parliament Manfred Weber complained that the rhetoric must stop after noting that the Greek PM labeled the lenders “terrorists”. Don’t be so sensitive Manfred. Here in America we get labeled as terrorists for j walking. Now if he had called you a racist…….

Posted on 7/6/15 | 8:26 AM CEST

Fixpir

The Greek have voted to receive more money from their European partners. Real democracy would request that now those same European partners vote to agree (or not) to give them a better deal.

More generally, those who think that democracy is to ask Libyan citizens if they want to have the right to immigrate in the EU, asking the Greek if they want to receive more money from their partners, asking the French engineering students if they want to be granted automatically a US Green Card, or ask the unemployed if they want to live a good life without working, those are mistaken. This kind of “democracy” is moot.

Posted on 7/6/15 | 9:23 AM CEST

Daniela

What if 18 eurozone countries now follow Greece’s democratic example and hold referendums on whether to keep supporting Greece? And what will Greece do in the meantime?

Posted on 7/6/15 | 11:04 AM CEST

Mike

“We have to respect the vote of the Greek people,” Why? Does that mean that any decision arrived at by “democratic” means must always be respected? The Greek default is a massive swindle – a crime. Now watch Europe’s socialists fall over each other with offers of “humanitarian aid” to assist the Greeks in walking away from their obligations.

Posted on 7/6/15 | 11:29 AM CEST

Stef

Austerity without the possibility to devaluate is clearly suffocating the Greek economy. Perhaps the best thing would be to let Greece leave the Euro and reintroduce the Drachma. This would at least give Greece the opportunity to devaluate the currency and make the restructuring more feasible.

Following a return to the Drachma, Europe could then offer help by restructuring or by writing off some of the debts to allow a quicker recovery.

Posted on 7/6/15 | 11:30 AM CEST

to badd

the real problem is Russia, and the key is turkey. the only question is if Russia attacks turkey from the rear would Greece help? in their state i kind of doubt it. maybe Russia should not play so ruff and leave Greece out of it.

Posted on 7/6/15 | 11:40 AM CEST

to badd

the real problem is$ Russia, and the key is turkey. the only question is if Russia attacks turkey from the rear would Greece help? in their state i kind of doubt it. maybe Russia should not play so ruff and leave Greece out of it.

Posted on 7/6/15 | 11:42 AM CEST

Person

wtf?

Posted on 7/6/15 | 1:15 PM CEST

not a socialist

“I hope that the EU will not seek to punish them for their democratic choice” – adults make bad choices and suffer the consequences. That is not punishment, that is self-inflicted. The party is over in Greece and the bill has come due, time to pay up or suffer the consequences.

Posted on 7/6/15 | 2:04 PM CEST

Janv

Tens of millions of Europeans in the south and in the north are now watching the outcome. How will European institutions act? This a a very important test and it seems not one of them is well prepared, flying all over Europe like lame ducks from one summit to another (while the Russian bear is watching). And if France, Italy and Spain remain silent now, Europe will prove that solidarity is no longer part of the European project. It never was by the way but is was a good marketing tool.

Posted on 7/6/15 | 3:37 PM CEST

Gert

First action, for which I feared most, already positive: ECB did not increase the ELA. Merkel and Hollande indicated now it is up to Greece to finally come with a serious proposal, which is also positive. Let’s keep up our hopes that democracy in other countries will remain respected as well.